Representation:

when an undertaking is transferred employees automatically have their contracts transferred on existing terms to the new employer by virtue of the Transfer of Undertaking (Protection of Employment) Regulations 1981 SI 1981/1794. If the terms of the contracts were in a collective agreement made between the old employer and the employees' trade union, the question can arise as to whether the employment terms included not only the provisions of the collective agreement itself but also a term that any replacement for the collective agreement should apply.

This EAT decision shows that unless there are clear words to the contrary it will only be the provisions of the collective agreement as at the date of the TUPE transfer which are relevant. Any subsequent replacement for that collective agreement will not automatically apply under the TUPE regulations unless there were clear words, probably in the employment contracts, to indicate that replacement collective agreements should apply.

For relevant general notes see Transfer of business or undertaking/effect of the TUPE regs .